Web shop attorney Alfred Sears charged that local banks should not have the right to refuse to do business with web shops while carrying out the same service for local casinos that offer similar products. CIBC FirstCaribbean International Bank, Scotiabank and Royal Bank of Canada have all indicated they will not accept money from online gaming, in keeping with their global polices.
In an interview with The Guardian last week, Sears questioned the "contradictory" position.
"The banks do not have a right to unilaterally, even before a license is granted, to say that 'I will not do business with Bahamian entrepreneurs engaged in interactive gaming,' when they are doing business with Atlantis, with Baha Mar, both of whom do interactive gaming," Sears said. "Secondly, you can not, using a public license, say that my home office policy is not to do business with any entity engaged in online or interactive gaming."
Sears, QC, pointed out that in order for web shop owners to receive licenses their equipment and operations must undergo the scrutiny of the Gaming Board. He also noted that web shop operators are prohibited from opening accounts online. Those who engage in online gaming are required to register at a web shop.
CIBC FirstCaribbean Managing Director Marie Rodland-Allen said recently, "As it stands right now, we, along with other major Canadian banks, have made a decision that we will not be accepting those funds."
RBC (Bahamas) and Commonwealth Bank previously said regularization alone will not address the problems that stop the banks from being able to open accounts on behalf of web shops.
Sears, a former attorney general, said a license to do banking in The Bahamas is a public license. He argued that the banks cannot use that license to discriminate. He also pointed to the banks' code of conduct, which he said calls on members to act reasonably and fairly. Sears said the stance that the local banks have taken may be in contravention of that code.
"To basically prohibit this particular sector of the Bahamian economy that is legitimate, that is regulated, from entering the banking or having access to banking facilities, I think that would be inconsistent with the proper use of a public license, it would be inconsistent with their code of conduct to act fairly," he said.
Island Luck CEO Sebas Bastian also addressed the issue recently. He said the refusal of some commercial banks to accept web shop proceeds despite the regularization process is "irresponsible, reckless and discriminatory". Prime Minister Perry Christie has said Bank of The Bahamas (BOB) will receive web shop funds. Throughout the regularization process, the government consulted international and local gaming specialists for advice on policy, procedural and tax measures to include in the amended legislation. It also presented its plans to the Financial Action Task Force (FATF).
The Gaming Board is in the process of reviewing the applications of nine web shops. The web shops that are under consideration are Bahama Dreams, FML Web Shop, Bet Vegas, A Sure Win, Paradise Games, Island Luck, Percy's at the Island Game, Asue Draw + Spin and Chances Games.
Click here to read more at The Nassau Guardian
